The British division of Swedish car-maker Saab has gone into administration.

Saab GB, the British division of the ailing Swedish car-maker, has gone into administration.

The company, which has traded in the UK for more than 50 years and distributes cars to 58 dealerships (20 of which are Saab only sites), reports it was a voluntary decision following months of suspended production and difficult negotiations involving its owner, Saab Automobile NV (Swan) in Sweden.

Saab GB has exclusive rights to distribute Saab cars and parts in the UK and employs 55 people at its headquarters in Milton Keynes. A statement today by the UK operation said: "The board of Saab GB is of the opinion that administration gives the company and creditors the necessary legal protection until it has secured the required funding for the company. The appointment of the administrator is effected by the directors of Saab GB."

Great Britain is Saab Automobile's largest sales market in Europe outside Sweden, with Saab GB also employing 65 people at its Saab City dealerships in Wapping and Fulham.

David Dunckley and Daniel Taylor of Grant Thornton UK LLP have been appointed joint administrators of Saab GB, giving them the management powers of the directors as Swan continues discussions with potential investors about the sale of Saab Automobile AB and Saab GB.